Fundamental analysis for precious metals gold - 4/22/2009

By IBT Staff Reporter On 09/30/09 AT 6:40 AM

As we discussed in our yesterday’s mid-day report that the price action was trending downward towards 881.00 to re-test the broken upper line of the minor descending channel and also to re-test 38.2% Fibonacci level of the entire rally started at 679.00 and topped out at 1006.00 before resuming the main upside action as the bullish harmonic pattern still has targets to be reached particularly if it succeeds to hit the cloud’s spans of Ichimoku indicator-currently located at 889.00- while the stochastic positive overlapping attempt supports our intraday bullish outlook. Only a break of 864.00 can invalidate our expected scenario.

The trading range for today is among the key support now at 840.00 and key resistance now at 925.00.

The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1060.00.

Support

876.00

864.00

855.00

847.00

840.00

Resistance

889.00

900.00

912.00

916.00

925.00

Recommendation

According to our analysis, buy gold at 883.00 with targets at 905.00 and stop loss at 864.00.